Eurex Repo

From MarketsWiki

'
Key People	Marcel Naas, Managing Director
Web site	http://www.eurexrepo.com

Eurex Repo is an electronic OTC market based on an internet platform for international repurchase agreements (repos), which are short-term secured funding instruments that make it possible for dealers in different debt instruments to either loan or be loaned securities over days or hours. It is wholly-owned and operated by Swiss-German derivatives exchange Eurex, which also owns the International Securities Exchange (ISE) and Eurex Bonds GmbH, and is itself a joint venture between SWX Swiss Exchange and Deutsche Boerse. Repo transactions are executed electronically on Eurex Repo, and are cleared through Eurex Clearing and settled either through SIS SegaInterSettle/Swiss Interbank Clearing (SIC), Clearstream or Euroclear. The central clearing facility through Eurex Clearing provides netting facilities for margin netting and settlement netting.

Volume

Volume in repos is quoted in "average outstanding volume".

• Total volume on Eurex Repo rose 9% in 2007, from an average outstanding volume of €84.4 billion in 2006 to €92.0 billion in 2007.
• Volume on the Swiss segment of Eurex Repo rose 5% in Swiss Frank terms, from an average outstanding volume of SF 64.4 billion (€42.9 billion) in 2006 to SF 67.9 billion (€43.8 billion) in 2007. Due to the strong euro, this represented just a 2% increase in euro terms.
• Volume on the Euro Repo segment of Eurex Repo rose 13%, from an average outstanding volume of €41.5 billion in 2006 to €46.8 billion in 2007.
• Volume on Euro GC Pooling, which is a subset of the Euro segment, increased 17%, from an average outstanding volume of €11.9 billion in 2006 to €13.9 billion in 2007.

Milestones

• Jan 2008 Record outstanding volume of €32 billion reached in Euro GC Pooling
• Dec 2007 Record outstanding volume of SF 101 billion reached in the Swiss Franc Market
• Nov 2007 Introduction of additional Euro GC Pooling contract “EGC Pool Flex TERM”
• Oct 2007 Extension of Euro GC Pooling basket with issues of Investitionsbank Berlin and Landeskreditbank Baden-Württemberg
• Sep 2007 Extension of Euro GC Pooling to Eurobonds and a wide range of European bonds
• Jul 2007 Introduction of German Pfandbrief securities
• Jun 2007 Introduction of the Direct Hit functionality in the CHF Market
• Apr 2007 Introduction of “Overnight CBL INTERNAL” contracts for GC and Special
• Mar 2007 Introduction of Triparty Euro GC Basket Trading
• Feb 2007 Record outstanding volume of €58 billionn reached in the euro Market
• Dec 2006 Introduction of European Government and European Corporate Bonds GC Baskets for GC & Special trading
• Oct 2006 Introduction of CCP Default Netting Facility for Euro GC Pooling trades
• Sep 2006 Automated settlement process for Inflation-linked German Government Bonds
• Jul 2006 Fifth anniversary of Euro Repo Market
• Sep 2005 Launch of the SecLend Market
• May 2005 Introduction of Fixed Income CCP
• Apr 2005 Launch of Swiss Franc Repo Multi-Currency Market
• Mar 2005 Introduction of Euro GC Pooling
• Feb 2005 Introduction of International Securities in the Euro Repo Market
• Jul 2004 Introduction of the Liquidity-Shortage Financing Facility
• Dec 2003 Introduction of Data Distribution Information Services
• Jun 2003 KfW and "Neue Bundesländer" (New German States) Securities are tradeable
• Mar 2002 Forward/Forward Contracts
• Feb 2002 Introduction of automatic GC Completion
• Jan 2002 Introduction of CLS Facility in the CHF Repo Market
• Nov 2001 Introduction of Intraday Repurchase Facility
• Jul 2001 Launch of the Euro Repo Market. The main component is the Overnight Euro Repo, which Eurex is the first to offer in an electronic repo market
• May 2001 Expansion of the SMI GC Basket by 5 more equities in the Swiss Franc Market
• Mar 2001 Auctions of Swiss Federal Bonds are carried out via the electronic trading platform
• Mar 2001 Start of Swiss Equity-Repo trading comprising the 10 most liquid equities in the Swiss Market Index (SMI)
• Feb 2001 Successful launch of auctions of Swiss registered money-market claims (GMBF's) via the electronic trading platform
• Feb 2001 Acceptance of German Jumbo Pfandbrief issues for repo trading
• Feb 2001 Auctions on GMBF
• Oct 2000 New Auction Module for SNB
• Oct 2000 SWX Repo becomes Eurex Repo
• Jun 2000 Outstanding trade volume in the Swiss Franc Repo Market exceeds SF 25 billion with more than 80 banks taking part
• Nov 1999 Introduction of new functional features; among others, anonymous trading and a direct link to the London Clearing House (LCH)
• Oct 1999 Intraday Auction SNB
• Jun 1999 Launch of the electronic Swiss Franc Repo Market, encompassing integrated clearing/settlement and fully automated auctions of the Swiss National Bank (SNB)

References

Collateral:Securities Lending, Repo, OTC Derivatives and the Future of Finance (Paperback). Amazon.com. Retrieved on 8 January 2008.